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Pakistan's policies are being acknowledged around the globe and the
Government is willing to collaborate in strengthening the role of Private
Sector Operations Department (PSOD) of Asian Development Bank (ADB) in
Pakistan to develop and attract private sector. Dr. Abdul Hafeez Shaikh
Federal Minister for Privatisation & Investment stated this while addressing a
seminar on ADB Private Sector Development Strategy here today.
He said that all the right components were there to focus on the enabling
environment as the present government policies were pro-private sector. ADB's
US $ 200 million facility for infrastructure development by the private sector
was encouraging. Though the client orientation and responsiveness in the
international agencies had increased but in Pakistan the government was ready
to set the pace for multilateral agencies, he added.
Dr. Abdul Hafeez Shaikh stated that Pakistan was an ideal place for private
sector investment as policy environment was attractive and there was no
restriction on equity limit or taking out the profit and capital outside. He
emphasized that there was a need to work on the informational failure and
advising and counseling to small and medium investors in identifying the
opportunities and the partners, which was necessary.
Mr. Robert Bestani, Director General Private Sector Operations Department (PSOD)
in Asian Development Bank (ADB) in his address said that ADB was now focusing
on new area from SME to banking and local currency financing for strengthening
the area of investment funds beyond its activities for hotels, hospitals and
education sector, as trade was important for the economic development. We
intend to create new entities for public private partnership to bring in new
investments in the housing finance as the economy of Asia was coming back and
ADB could play an important role in the area of privatisation as well, he
added and said that we were moving quickly in financing the private sector and
the private sector had also started appreciating ADB's presence.
Earlier, Mr. Marshuk Ali Shah County Head for Pakistan's ADB Mission said that
the recent changes in the geo-political situation of Pakistan and the
resultant change in the country's domestic and international image, presented
a good opportunity to ADB to play a catalytic role for further development of
the country's private sector. Improvement in the macro-economic performance,
the favorable outcome of the recent Paris Club deliberations, increase in the
country's foreign exchange reserves and relative stabilization of the rate of
exchange between Pak Rupee and the US dollar were some of the additional
comfort factors, he added.
Pakistan was the largest recipient of the Bank's direct assistance extended to
the private sector among the ADB's member developing countries. Total
assistance to this sector stands at US $ 402 million (Pak Rupees 14 billion at
the current rate of exchange) and the direct ADB assistance to private sector
enterprises had exceeded to US $ 241 million to date, he informed.
He further stated that in addition, complementary loans of more then US $ 129
million had been arranged for private sector borrowers, catalyzing and
leveraging its direct assistance. ADB also generated business opportunities
for the private sector through its public sector activities and helped
governments to create enabling conditions for private sector investment, he
added. ADB have to date provided public sector financing in excess of US $ 2
billion for the enhancement of an enabling environment for the development of
the private sector.
As of December 31, 2002 ADB had approved a total of 196 public sector loans
for Pakistan for a principal amount of US $ 12.7 billion and provided support
of US $ 100 million for 253 TA Projects. Presently, 53 public sector loans
covering 38 projects are under implementation. Finally 57 TA s for a total of
US $ 29.5 million are under implementation. Mr. Allan Lee, Senior Investment/
Project Implementation Officer also detailed the contribution towards various
private sector companies.
Later, in an informal chat with the media persons Dr. Abdul Hafeez Shaikh said
the bidding for the privatisation of Pakistan State Oil (PSO) was scheduled in
the next month and a date to this effect would be announced after getting
clearance of the agreement documents from the relevant ministries. The Public
Offering of 3.2 % GoP shares in National Bank of Pakistan would be opened from
October 8 to 10 while Initial Public Offering of 2.5 % Oil & Gas Development
Company Limited (OGDCL) shares with an additional 2.5 % Green Shoe option was
scheduled from October 22 to 24 subject to approval from the Stock Exchanges,
which would be followed by PIAL and SSGC shares offering and the bidding for
Habib Bank Limited was targeted in December this year, he informed.
The ADB Mission during their visits to Karachi and Lahore will meet other
Government agencies at the Federal and Provincial levels, business groups and
banks. The Mission is also holding seminars at Karachi and Lahore to brief
private sector groups in Pakistan on ADB's private sector operations.